Forbes backs £14.2m Ferguson Marine funding amendment

The Scottish Government has reaffirmed its commitment to invest up to £14.2 million in modernising Ferguson Marine, with Deputy First Minister Kate Forbes confirming her support for a Labour amendment calling for the funding to be delivered.

Speaking during a Scottish Parliament debate on the Public Audit Committee’s report into Ferguson Marine (Port Glasgow) Holdings Limited, Forbes said the commitment to modernisation funding remained in place, subject to governance and commercial safeguards.

“The Government remains firmly committed to supporting the yard to compete for and win new contracts, and to secure its long-term sustainability.”

She told MSPs that up to £14.2 million had been allocated over two years to support yard upgrades, saying “As part of that commitment, up to £14.2 million has been allocated over two years to support yard modernisation, subject to due diligence and commercial tests. That commitment has not changed, and, in that spirit, I am more than delighted to support Daniel Johnson’s amendment.”

Forbes said the Government had already approved multiple spending requests from the yard, with funding directed at operational improvements rather than large-scale transformation, “To date, we have received 11 capital expenditure requests from Ferguson’s, all of which have been scrutinised rigorously and approved.”

She said the approved investments were supporting repairs, safety measures and equipment upgrades linked to delivery of the MV Glen Rosa and future capacity.

“That targeted investment supports essential repairs, health and safety improvements, and equipment upgrades. It is intended to assist with the delivery of the MV Glen Rosa and to build capacity for the yard to deliver future work more efficiently.”

However, Forbes made clear that access to the remaining funding was conditional on the yard producing a revised, board-approved business plan, adding “Access to the remainder of the modernisation funding requires a clear, board-approved long-term strategy, which will be evidenced through the revised business plan that is currently being finalised.”

She stressed that the strategy must come from the board rather than ministers, “It is important to note that that is the board’s business plan, which will then be submitted to ministers”, she also underlined the constraints facing any future public sector contracts for the yard, warning that procurement and subsidy control rules could not be bypassed.

“Shipbuilding is a competitive global market and any public contract award must fully comply with procurement and subsidy control rules.”

She said failure to comply would risk legal challenge and delay.

“If it does not, we will have the worst of both worlds—no work for Ferguson Marine and ships not being built”

Looking ahead, Forbes said lessons from previous ferry projects were being applied to the remaining build programme, “Lessons from the MV Glen Sannox are being applied to the MV Glen Rosa’s build and commissioning stages.”

She argued that recent leadership and governance changes had improved the yard’s prospects, while acknowledging further work remained, “There is still much to do at Ferguson Marine, but strengthened leadership, firmer governance, targeted investment and clearer strategic planning provide a more stable foundation for the yard’s future.”